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B4 the Bell Fryday June 18, 2004


Guest yobob1

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Oh brother. I was up late last night so I was disgusted at myself for closing 1/3 of my SMH puts, seeing someone post that SOX was at 450.

 

By the time I got the streamer loaded, I looked like 1/3 of a genius. We won't mention what the other 2/3 looks like. :o

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Here is the link to the CECO court documents. It contains depositions of 14 former employees, some at very senior levels of the company. The allegations are numerous and extremely damaging, including defrauding the government by falsifying documents in order to collect federal tuition aid funding for students that were not even enrolled. These allegations are much more widespread than the ones that surfaced last year, and are corroborated by far more insider sources. This stock trades at almost 40x earnings that may not even be real. This stock could get cut in half. It traded in the $30s when the initial claims started to trickle out last time. Now they have further substantiation. The company's terse defense this morning speaks volumes. Will be interesting to see what barron's has to say about it this weekend.

 

http://www.glrs.com/inbox/cases/23699.pdf

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